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(Reuters) – U.S. gasoline demand in May fell to the lowest for that month since the coronavirus pandemic of 2020, data from the Energy Information Administration showed on Thursday, indicating consumers cut back on fuel purchases despite lower prices.
Product supplied of finished motor gasoline, the EIA’s proxy for demand, averaged about 9.06 million barrels-per-day in May, down 3.6% from last year, marking a major reversal in fuel consumption in the world’s largest gasoline market.
U.S. President Donald Trump has credited himself for lowering gasoline prices, which had surged to a record high in 2022 due to supply disruptions caused by Russia’s invasion of Ukraine.
Analysts, however, have said a slow start to the U.S. summer driving season, partly due to economic uncertainty from Trump’s economic policies, is driving the decline.
Gasoline prices fell 8.3% over the 12-month period ended June, the latest Consumer Price Index report showed, as U.S. crude prices tumbled more than 20% amid concerns over lackluster demand and a trade war with China.
“Uncertainty, in my opinion, is the larger issue,” said Patrick De Haan, head of petroleum analysis at market tracker GasBuddy.
“The tariff/trade situation has left consumers feeling a bit pessimistic,” he said. “Look for a rebound in June/July from the May figures, though I doubt they’d be better than 2024.”
Gasoline demand averaged 9.40 million bpd in May last year, which was the highest for any month since the pandemic, data from the EIA showed.
Reporting by Shariq Khan in New York Editing by Marguerita Choy
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